Below you’ll find updated info that provides more detail about the proposed First Time Home Buyers Tax Credit extension.  The information provided is the latest update about the proposal, but certainly not the final until it is passed through the House.   The majority of the information that I have found says that the House leaders are expected to fully support the extension, but Senators in both political parties are hoping to add other tax provisions unrelated to the First Time Home Buyers Tax Credit Extension.

As always, we will pass along more information as we receive it!

Have a great day!

The Kelly Sells Atlanta Team
www.KellySellsAtlanta.com
…your next move is our business…

Status on the First Time Home Buyer Tax Credit Extension

Congress and the Senate have drafted an amendment to provide an extension to the now popular First Time Home Buyer Tax Credit. The extension amendment has not been passed yet. “The Senate has agreed on a compromise measure that would extend and expand the popular home buyer’s tax credit, “but it is not clear when or how it will be considered,” according to a key Capitol Hill source. That’s because its fate is connected to a battle over amendments to a more important bill providing additional unemployment benefits”.  Again, this is the current proposal and is not a Bank of America endorsement until the final bill is passed.

 

Following are the latest provisions of the proposed First Time Home Buyer Tax Credit Extension:

 

• The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).

 

• Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.

 

• The tax credit would run through April 30, 2010. However, there would be a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction by the end of June, 2010.

 

• The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.

 

• Cost of the home may not exceed $800,000 to be eligible.

 

• For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.

 

• Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.

 

• The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.

 

• The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.

(info above provided by Bank of America Lenders)

This entry was posted on Friday, October 30th, 2009 at 12:23 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.